Publication:
Loan Loss Provisioning and Economic Slowdowns : Too Much, Too Late?

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dc.contributor.authorLaeven, Luc
dc.contributor.authorMajnoni, Giovanni
dc.date.accessioned2014-08-19T15:24:18Z
dc.date.available2014-08-19T15:24:18Z
dc.date.issued2001-12
dc.description.abstractOnly recently has the debate on bank capital regulation devoted specific attention to the role that bank loan loss provisions can play as part of a minimum capital regulatory framework. Several national regulators have adopted or are planning to introduce a cyclically adjustable requirement for loan loss provisions, and the Basel Committee on Banking Supervision is considering how to provide adequate treatment to provisioning practices within a broad bank capital regulatory framework. The authors contribute to the ongoing debate by exploring the available evidence about bank provisioning practices around the world. They find that in the vast majority of cases banks tend to delay provisioning for bad loans until it is too late-when cyclical downturns have already set in-possibly magnifying the impact of the economic cycle on the income and capital of banks. Notwithstanding the considerable variation in the patterns followed by banks around the world, Laeven and Majnoni find that the size and timing of provisions tend to improve with the level of economic development.en
dc.identifierhttp://documents.worldbank.org/curated/en/2001/12/1671257/loan-loss-provisioning-economic-slowdowns-too-much-too-late
dc.identifier.doi10.1596/1813-9450-2749
dc.identifier.urihttps://hdl.handle.net/10986/19410
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 2749
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING PRACTICES
dc.subjectAGENTS
dc.subjectARBITRAGE
dc.subjectBALANCE SHEET
dc.subjectBALANCE SHEET INFORMATION
dc.subjectBALANCE SHEETS
dc.subjectBANK CAPITAL
dc.subjectBANK EARNINGS
dc.subjectBANK LENDING
dc.subjectBANK LIABILITIES
dc.subjectBANK LOANS
dc.subjectBANK PROFITS
dc.subjectBANK REGULATION
dc.subjectBANK RISK
dc.subjectBANK SUPERVISION
dc.subjectBANKING SUPERVISION
dc.subjectBANKING SYSTEMS
dc.subjectBANKS
dc.subjectBONDS
dc.subjectCAPITAL REGULATION
dc.subjectCAPITAL REQUIREMENT
dc.subjectCAPITAL REQUIREMENTS
dc.subjectCAPITAL STANDARDS
dc.subjectCOMMERCIAL BANKS
dc.subjectCONSUMER PRICE INDEX
dc.subjectCREDIT RISK
dc.subjectCREDIT RISKS
dc.subjectDISCLOSURE
dc.subjectECONOMETRIC EVIDENCE
dc.subjectEXTERNALITIES
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL REGULATION
dc.subjectFINANCIAL SECTOR
dc.subjectFINANCIAL SERVICES
dc.subjectFINANCIAL STABILITY
dc.subjectFINANCIAL SYSTEMS
dc.subjectGDP
dc.subjectGDP PER CAPITA
dc.subjectGOVERNMENT BONDS
dc.subjectGROSS DOMESTIC PRODUCT
dc.subjectGROWTH RATE
dc.subjectINTEREST INCOME
dc.subjectINTEREST RATE
dc.subjectLIQUIDITY
dc.subjectLOAN LOSS PROVISIONS
dc.subjectLOSS RATIO
dc.subjectMACROECONOMIC SHOCKS
dc.subjectMINIMUM SOLVENCY RATIOS
dc.subjectNEGATIVE EXTERNALITIES
dc.subjectOPERATING COSTS
dc.subjectPORTFOLIO
dc.subjectPROBLEM LOANS
dc.subjectPRUDENTIAL REQUIREMENTS
dc.subjectREAL GDP
dc.subjectREAL SECTOR
dc.subjectREGULATORY FRAMEWORK
dc.subjectREGULATORY REGIMES
dc.subjectRESERVES
dc.subjectRETAINED EARNINGS
dc.subjectRISK MANAGEMENT
dc.subjectRISK PREMIUM
dc.subjectRISK TAKING
dc.subjectRISK WEIGHTED ASSETS
dc.subjectRISK-WEIGHTED ASSETS
dc.subjectSMALL BANKS
dc.subjectSOLVENCY
dc.subjectSOLVENCY RATIO
dc.subjectSOLVENCY RATIOS
dc.subjectSUBSIDIARY
dc.subjectTIER 1 CAPITAL
dc.subjectTIER 2 CAPITAL
dc.titleLoan Loss Provisioning and Economic Slowdowns : Too Much, Too Late?en
dspace.entity.typePublication
okr.crossref.titleLoan Loss Provisioning and Economic Slowdowns: Too Much, Too Late?
okr.date.disclosure2001-12-30
okr.date.doiregistration2025-04-10T09:29:37.807410Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2001/12/1671257/loan-loss-provisioning-economic-slowdowns-too-much-too-late
okr.globalpracticeFinance and Markets
okr.globalpracticeGovernance
okr.globalpracticeFinance and Markets
okr.guid180001468766832313
okr.identifier.doi10.1596/1813-9450-2749
okr.identifier.externaldocumentum000094946_02011704031317
okr.identifier.internaldocumentum1671257
okr.identifier.reportWPS2749
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2002/01/25/000094946_02011704031317/Rendered/PDF/multi0page.pdfen
okr.sectorFinancial Sector Development
okr.sectorFinance
okr.topicEconomic Theory and Research
okr.topicInsurance and Risk Mitigation
okr.topicBanks and Banking Reform
okr.topicLaw and Development::Banking Law
okr.topicInternational Terrorism and Counterterrorism
okr.topicPayment Systems and Infrastructure
okr.topicFinance and Financial Sector Development
okr.unitFinancial Sector Strategy and Policy Department
okr.volume1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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